Pick and Pack Cost Calculator
Calculate warehouse pick-and-pack labor expenses per order based on hourly wages, labor tax burdens, pick duration, and packaging materials.
Pick and Pack Cost Formula
Labor Rate/Min = [Hourly Wage × (1 + Burden %)] / 60; Total Cost = [(Pick Mins + Pack Mins) × Labor/Min] + Materials- Fully Burdened Wage: Base warehouse hourly wage plus 18% to 25% for employer payroll taxes, workers comp, and benefits.
- Pick Minutes: Walking warehouse aisles, scanning barcodes, and placing items in order totes.
- Pack Minutes: Box assembly, item insertion, dunnage cushioning, tape sealing, and label application.
- Materials: Direct packaging box and filler costs.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Labor burden includes employer FICA, FUTA, SUTA, and workers compensation insurance.
- Assumes barcode scanner verification to minimize picking error rates.
Frequently Asked Questions
What is the average pick and pack time for an e-commerce order?
In an organized warehouse with barcode picking, single-item orders take 1.5 to 3 minutes, while multi-item apparel or cosmetics orders take 3 to 6 minutes.
Is it cheaper to do pick-and-pack in-house or hire a 3PL?
Under 300 orders/month, in-house founder fulfillment is cheaper. Between 300 and 3,000 orders/month, 3PLs often provide lower costs through bulk carrier postage discounts and flexible hourly labor.
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